High activity in the Norwegian M&A market

2018 looks to be a busy year for M&A practitioners in the Norwegian market

The lack of opportunity for organic growth in a generally low-growth environment, transformational developments in technology and the need to acquire new technology to stay ahead of competition are some of current trends affecting Norwegian based companies and can been seen as drivers for the high deal activity in the Norwegian M&A market. Global equity markets seem to continue the advance to new record highs (even if we have witnessed some increasing concerns from some investors over potential trade-war between the US and China etc), that also appears to contribute to the increase in the issue of shares as partial consideration in acquisitions. At the same time, cheap debt financing also continues to be one of the main drivers for M&A deals in the Norwegian market.

 

Overall, we are optimistic for the Norwegian M&A market for 2018. Investors continue to view Norway as a good place to invest, owing to its highly educated workforce, technology, natural resources and well-established legal framework for M&A transactions. Nevertheless, we should not close our eyes to the fact that Norway over the past three years has become more exposed to the force of world events than in previous years, and that the Norwegian M&A market therefore to a greater extent than preceding years will depend on global macroeconomic developments. It is also worth noting that several companies are expected to be developed for listings later in 2018. It is therefore expected that new targets for public M&A will be seen in the Norwegian market place in the future and there is reason to believe that some of these new companies will be taken into private ownership relatively shortly after having been listed.

Aabø-Evensen & Co has contributed to the Getting the deal through series since 2012. Read about the above mentioned and more in the newly released and updated 2018 edition by clicking here; Getting the Deal Through: Public M&A 2018. The Norway chapter covers not only the recent trends and developments in the public M&A sphere, but also provide you with a valuable go to legal guide for doing public M&A transactions in Norway.

Aabø-Evensen & Co has extensive experience of acting as legal advisors in connection with transactions involving public stakeholders. Latest, Aabø-Evensen & Co acted as legal advisor to OSE-listed LINK Mobility Group ASA and the reinvestment of certain of its management shareholders in connection with the NOK 3.4 billion recommended voluntary cash offer to acquire all shares in LINK Mobility Group ASA by the US PE fund ABRY Partners’ supported Victory Partners VIII Norway AS.

Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through – Public M&A 2018 (Published: August 2018). For further information please visit www.gettingthedealthrough.com.